{"id":438,"date":"2023-03-28T23:02:24","date_gmt":"2023-03-29T04:02:24","guid":{"rendered":"https:\/\/enjoyingthisjourney.com\/china-emerges-as-new-global-heavyweight-lender-with-240bn-in-bailouts-for-developing-countries\/"},"modified":"2023-03-28T23:02:24","modified_gmt":"2023-03-29T04:02:24","slug":"china-emerges-as-new-global-heavyweight-lender-with-240bn-in-bailouts-for-developing-countries","status":"publish","type":"post","link":"https:\/\/enjoyingthisjourney.com\/china-emerges-as-new-global-heavyweight-lender-with-240bn-in-bailouts-for-developing-countries\/","title":{"rendered":"China Emerges as New Global Heavyweight Lender with $240bn in Bailouts for Developing Countries"},"content":{"rendered":"<p>China has spent $240bn bailing out 22 developing countries between 2008 and 2021, with the amount soaring in recent years as more have struggled to repay loans spent building &#8220;Belt &#038; Road&#8221; infrastructure, according to a study by researchers from the World Bank, Harvard Kennedy School, Kiel Institute for the World Economy and the US-based research lab AidData.<sup id=\"cite_ref1-0\" class=\"reference\"><a href=\"#cite_note1-0\">[0]<\/a><\/sup> The bailout loans are mainly concentrated in the middle-income countries that make up four-fifths of its lending, due to the risk they pose to Chinese banks' balance sheets.<sup id=\"cite_ref1-0\" class=\"reference\"><a href=\"#cite_note1-0\">[0]<\/a><\/sup> Grace periods and maturity extensions are granted to low-income nations, while middle-income nations are deemed a hazard to the financial stability of Chinese banks.<sup id=\"cite_ref1-1\" class=\"reference\"><a href=\"#cite_note1-1\">[1]<\/a><\/sup> China typically offers rescue loans with an average interest rate of 5%, more than double the rate typically provided by the IMF.<sup id=\"cite_ref1-2\" class=\"reference\"><a href=\"#cite_note1-2\">[2]<\/a><\/sup> The US and International Monetary Funding have for decades been the globe\u2019s lenders of last resort, stepping in to provide emergency loans to countries in financial distress.<sup id=\"cite_ref1-3\" class=\"reference\"><a href=\"#cite_note1-3\">[3]<\/a><\/sup> But a new study shows how China has emerged as a new global heavyweight.<sup id=\"cite_ref1-3\" class=\"reference\"><a href=\"#cite_note1-3\">[3]<\/a><\/sup><\/p>\n<p><span id=\"cite_note1-0\">0. <\/span>&#8220;China spent US$240 billion bailing out &#8216;Belt & Road' countries: Study&#8221; CNA, 27 Mar. 2023, <a target=\"_blank\" href=\"https:\/\/www.channelnewsasia.com\/asia\/china-belt-and-road-countries-bailout-loans-debt-3378326\" rel=\"noopener nofollow\">https:\/\/www.channelnewsasia.com\/asia\/china-belt-and-road-countries-bailout-loans-debt-3378326<\/a><\/p>\n<p><span id=\"cite_note1-1\">1. <\/span>&#8220;Belt and Road Initiative in Jeopardy: China spent $240 billion baling out BRI countries&#8221; Organiser, 28 Mar. 2023, <a target=\"_blank\" href=\"https:\/\/organiser.org\/2023\/03\/28\/166819\/world\/belt-and-road-initiative-in-jeopardy-china-spent-240-billion-baling-out-bri-countries\" rel=\"noopener nofollow\">https:\/\/organiser.org\/2023\/03\/28\/166819\/world\/belt-and-road-initiative-in-jeopardy-china-spent-240-billion-baling-out-bri-countries<\/a><\/p>\n<p><span id=\"cite_note1-2\">2. <\/span>&#8220;China gave huge loans to Belt and Road countries. Now it's spending billions to bail them out&#8221; KTVZ, 28 Mar. 2023, <a target=\"_blank\" href=\"https:\/\/ktvz.com\/news\/2023\/03\/28\/china-gave-huge-loans-to-belt-and-road-countries-now-its-spending-billions-to-bail-them-out\/\" rel=\"noopener nofollow\">https:\/\/ktvz.com\/news\/2023\/03\/28\/china-gave-huge-loans-to-belt-and-road-countries-now-its-spending-billions-to-bail-them-out\/<\/a><\/p>\n<p><span id=\"cite_note1-3\">3. <\/span>&#8220;How China Became a Global Lender of Last Resort&#8221; TIME, 28 Mar. 2023, <a target=\"_blank\" href=\"https:\/\/time.com\/6266658\/china-emerges-major-global-lender\/\" rel=\"noopener nofollow\">https:\/\/time.com\/6266658\/china-emerges-major-global-lender\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China has spent $240bn bailing out 22 developing countries between 2008 and 2021, with the amount soaring in recent years as more have struggled to repay loans spent building &#8220;Belt &#038; Road&#8221; infrastructure, according to a study by researchers from the World Bank, Harvard Kennedy School, Kiel Institute for the World Economy and the US-based [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/438"}],"collection":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/comments?post=438"}],"version-history":[{"count":1,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/438\/revisions"}],"predecessor-version":[{"id":439,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/posts\/438\/revisions\/439"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media\/437"}],"wp:attachment":[{"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/media?parent=438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/categories?post=438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enjoyingthisjourney.com\/wp-json\/wp\/v2\/tags?post=438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}